Originally posted by Justlocal
As far as there being no cash benefit flowing to MAY:- As I read the announcement, The farm in partner will pay all guarantees. So, on completion of the conditions precedent, the USD 3m odd guarantee currently provided by MAY to CUPET will be returned and replaced by the partner. At least I hope so. Other than that I think your right, MAY now needs to proceed to AIM listing and fund raise in order to find and pursue some new activities. But this is good news and sets the deal in stone on terms previously announcement. A good start to the new year. Cheers!.
One more point to add to my previous post: MAY has just 8 days before the USD loan repayment falls due (Jan 10th). I think it is doubtful that all conditions precedent will be met in that time and the guarantee funds returned to MAY and I assume, that there will be a desire for MAY to retain whatever bank balance it has at present. So, as I have previously mentioned, I see limited alternatives for repayment within the timeframe. 1) the lender accepts shares in lieu of repayment, or 2) Mr Purcell exercises his guarantee and takes over the loan, at least until the USD 3m odd guarantee is returned. Of course, MAY could negotiate an extension to the loan if the lender is amenable. The lender is getting 15% interest after all. Cheers!
